If you did not actually receive the bonus, then no, you should not claim it as income. However, if they reported it on a 1099 then you will need to add it and then make a correction to the income to remove it. Be 100% sure that you did not receive this before you remove this from taxable income.
To enter the 1099 as non-self-employment income take the following steps:
- Income
- 1099-MIsc under Other Common Income
- Enter the information from the 1099-MIsc
- Continue through and say the work does NOT involve work that is like your main job
- Select the years you received it
- Say no, to did this involve an intent to earn money
Then you will take the following steps to remove the income:
- Income
- Less Common Income
- Miscellaneous Income
- Other Reportable Income
- Answer Yes to Any Other Taxable Income
- Enter the description such as 1099-Misc received for bonus that was not received or paid
- Enter the amount on the 1099-Misc as a negative number.
If it was reported on your W-2, then you will need to ask for a corrected W-2 from your employer. If they actually did pay it, then they would have documentation of that. If they did not pay it and refuse to make a correction, you can file form 4582 as a substitute W-2 by following the instructions in the link.
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